Coase and Phillips Lectures available

Not books but journal articles

The Journal Economica is making available the Coase and Phillips lectures for free online, as well as the original classic Coase and Phillips articles which inspired the lecture series. Well worth accessing for those interested. They are:

The second Phillips lecture by Thomas Sargent took place in February 2010 at the LSE. A podcast and video of the lecture is available here.

The second Coase lecture by Jean Tirole took place in February 2009. A podcast of the lecture is here.
The article is:
Individual and Corporate Social Responsibility

The first Phillips lecture by Robert Lucas took place in February 2008.
And the article is:
Ideas and Growth

The inaugural Coase lecture by Oliver Hart took place in February 2007.
His article is: Reference Points and the Theory of the Firm     
      
 
The original Coase and Phillips articles are:

The Nature of the Firm
R. H. Coase

The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957
A. W. Phillips

Uprising

There's a positive review by Stefan Wagstyl of the FT of George Magnus's new book, Uprising: Will Emerging Markets Shake or Shape the World Economy? According to the review, Magnus, a senior economist at UBS,

' … answers
the question in his title unequivocally: the global influence of the
emerging economies is growing but they are not even close to threatening
a world order dominated by the US. The emerging economies will “shape”
the world economy but none, not even China, will “shake” it.'

It makes quite a change to find an author arguing that there will not be a new world order led by China and maybe India. But there have been some taking a nuanced view. Will Hutton's The Writing on the Wall: China and the West in the 21st Century is a considered analysis of China's strengths and weaknesses – the latter including its rapidly ageing population and surplus males due to the one child policy, not to mention the overwhelming political question of whether market reforms will at some stage require or prompt political liberalisation.

Others worth looking at – all with varying perspectives are The End of Influence by Stephen Cohen and Brad De Long, Awakening Giants, Feet of Clay by Pranab Bardhan, China and America: A Time of Reckoning by Charles Dumas, and, with a wider perspective looking also at the weaknesses of the west, Stephen King's Losing Control.

Most western authors are naturally mainly interested in what China's rise as an economic power means for the western position. However, I was forcefully struck recently by a comment Jim O'Neill of Goldman Sachs made on BBC Radio 4's Today programme ahead of the G20 conference in Seoul: the Asians, he said, call the current crisis the North Atlantic crisis. Even if China does not become the powerhouse some expect, we in the west have done pretty well at undermining our own strength.

Famine and Foreigners

The debate about the role of aid in development is a long way from being settled, and Peter Gill's new book, Famine and Foreigners: Ethiopia Since Live Aid, will not be the final word. It's still an essential read. Gill presents detailed reports of what he has seen and heard in the country, and what people ranging from the country's leader Meles Zenawi to villagers living every day in hunger have told him. His question in this book: 25 years on from the famine of 1984 – the one that made the average westerner aware of Ethiopia – was hunger history?

The answer is 'no'. And is was so clearly negative that much of Gill's research for this book formed an exploration of the causes of that failure.

The role of NGOs is one of the causes he explores. Gill is not an outright critic of the aid business. A review of this book by David Rieff had led me to expect much more overt criticism of the counter-productive effects of foreign money and agencies. Equally, he is no fan of the actions of many of the external donors and agencies, and describes the compromises they decided to make with the authorities and their opponents in order to get supplies to the hungry villages. On the other hand – and I think I'm now on my third hand – he is clear-eyed about the responsibility of the government for continuing poor harvests and hunger. Meles Zenawi emerges from this book as an intriguing character. It's not clear what Gill thinks about him – it seems to be a mixture of admiration for Meles' early achievements and firm criticism of his later authoritarianism. Meles seems to be, like Rwanda's Paul Kagame, an ambivalent figure.

The key reason for concern about the Ethiopian government's role is its increasing intolerance of dissent. Gill presents one of the most thoughtful discussions I've come across of the modern politics of the aid business. Western governments and NGOs have increasingly insisted on 'good governance' and democratisation as a condition of assistance, but this conditionality takes them to the heart of the politics of the recipient countries. The debate about the politicisation of aid is at the heart of this excellent account. Gill focuses on Oxfam, making use of its own self-evaluations and interviews with former and current staff members. He writes: “It was the campaigning role of the charities within developing countries which began to court controversy, and it was the Ethiopian authorities which offered serious resistance.” (p182) One has sympathy with an intelligent and sophisticated African leader who declines to be lectured about 'governance' by young westerners with one eye on the increasing corporate success of their multi-million pound organisation. In an interview with Gill, Meles says:

“These NGOs were initially seen as an antidote to what was said to be the main problem in Africa – the bloated state. .. You reduce the role of the state, including your social services, and you encourage NGOs to provide as much of the public services as possible. In the end we argue that the NGOs have turned out to be alternative networks of patronage.” (p191)

An argument which might give us pause in the context of our own domestic political debate at the moment. One chapter of the book looks with some sympathy at the role Chinese investors are playing now in Ethiopia, with their focus on getting the roads built rather than lecturing the government about the country's internal politics.

On the other hand, one has no sympathy with the same leader when he starts to imprison and harass political opponents on the grounds that freedom is a luxury inappropriate to a developing country. Linda Polman's recent book War Games debates some of these same issues – she too is a journalist confronting the issues with the experience of many years' reporting in Africa. She is more overtly critical of western agencies; Gill sees more complexity.

There are other important themes in the book. One is the importance of demography, little discussed these days. Ethiopia's food problem is in large part a problem of keeping supplies growing in line with an exploding population. The total doubled to about 80 million in the 25 years after the 1984 famine, and is predicted to double again in the next 25 years. Large families, especially in polygamous families, remain the norm. It's almost impossible to imagine agricultural productivity improvements that could keep up, short of a profound technological step. But since the domestic moral values of George W Bush diverted the aid business from population control, the issue has been ignored. Funding for family planning in sub-Saharan Africa would cost an estimated $400m a year or so – compared to the $16bn being spent on HIV/AIDS. It's not that the latter is unimportant, but can this be the right balance?

In sum, this is an important and essential book for both its witness to the shape of Ethiopia now, and for its contribution to the development debate. This debate was ever a polemical one, although the opposing positions have shifted over the years. Peter Gill is to be congratulated for addressing the issues with the care and detail they deserve.

The Economics of Enough

The Princeton University Press catalogue for Spring 2011 arrived yesterday, and it trails what must surely be one of the most important economics books out next year – my own! The Economics of Enough: how to run the economy as if the future matters will be published in February and is available for pre-order on Amazon UK and Amazon US (and other online booksellers). The subtitle explains the aim of the book, which explores both the multiple crises of sustainability – financial, environmental, social – and the possible routes to getting decision-making with a longer term time horizon. The vision of the Victorians, living through an earlier era of profound technological and social change, inspires me. How did they manage to transform living standards from one generation to the next and at the same time build such lasting infrastructure and cultural legacies that we are still living off them now?

I'll post more about the book as we get closer to the official launch, and there will also be some talks and events. The fantastic cover image is by a wonderful artist, Julee Holcombe.

The Princeton catalogue has a lot of other tantalising titles. I'm particularly taken by the look of Daniel Drezner's Theories of International Politics and Zombies, in which he apparently stress tests international political theory by asking how it would treat a zombie invasion. I also like the look of Emma Rothschild's new book The Inner Life of Empires, a perspective on the Enlightenment through one extended Scottish family, and Beyond Mechanical Markets by Roman Frydman and Michael Goldberg, which argues that financial markets are so inherently irrational that neither behavioural nor neoclassical analysis is valid. Loads of beautiful natural history and other titles too.

Top women

“Women,” said Paul Samuelson, “Are men without money.” This undiplomatic statement was quoted by France's Finance Minister Christine Lagarde at the FT's Women at the Top conference in London yesterday. However, Samuelson was right. The gender pay gap is large and stubborn. The economic research points the finger at the typical woman's broken career trajectory – motherhood carries a large financial penalty. But the economically rational explanation isn't the full story. Much of the debate at the FT conference yesterday was about, in effect, discrimination and whether legal quotas will be required to overcome ingrained bias against women on boards and in other top jobs.

Another issue, however, is whether women do for ourselves as much as we could. One of the best books I've read recently about the gender pay gap is Linda Babcock and Sarah Laschever's Women Don't Ask: Negotiation and the Gender Divide. In essence it says – as the title puts it – that women don't ask for as big a salary or bonus or as many promotions as their male counterparts. So the good news is that if we ask for more, we'll get more. The bad news is that such behaviour is seen as unwomanly and we will make ourselves unpopular.

Let's hope that the FT's efforts will contribute to some new momentum on this front – the paper has a shiny supplement today on top women which looks to be full of encouraging examples. The composition of boards and top management isn't just a question of more women of course. The problem is the homogeneity and conformism of boards. Another outstanding book about the way diversity – in the conventional sense – leads to fresh ideas and better problem solving is Scott Page's The Difference. More reading recommendations welcome.